Small Recycling
Market Cap
₹4,750 ₹4,750 Cr.
P/E
22.36
PEG
0.90
PEG = P/E ÷ 5yr forward EPS CAGR
5yr forward EPS CAGR thesis · Base case

The main trigger is successful commercialization of the new Bawal and Shoolagiri capacity; without it, the revenue ramp shifts toward the bear path.

Aluminium is the largest absolute driver, while Other Metals provides the faster mix shift as the company moves toward a 75:25 aluminium-to-other-metals split.

Customer-conversion speed and utilization separate bull from bear: earlier commercialization and higher utilization favor bull, while commissioning delays or weak FY27 volumes favor bear.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • The main trigger is successful commercialization of the new Bawal and Shoolagiri capacity; without it, the revenue ramp shifts toward the bear path.
  • Aluminium is the largest absolute driver, while Other Metals provides the faster mix shift as the company moves toward a 75:25 aluminium-to-other-metals split.
  • Customer-conversion speed and utilization separate bull from bear: earlier commercialization and higher utilization favor bull, while commissioning delays or weak FY27 volumes favor bear.
Bear : 0.4% CAGR • ₹186 Cr
Base: 5.4% CAGR • ₹236 Cr
Bull: 9.5% CAGR • ₹286 Cr
Buy Report $5
Management Credibility Report
TRACK RECORD
  • Management's forward guidance is specific on dates, capacity and spending, but none of it has reached a measurement date, so credibility remains unproven rather than failed.
  • Trust is conditional: capacity, volume, mix and commissioning are concentrated in the same FY27 window, so a slip in one area could stress several promises at once.
  • The underlying pattern is a plan under construction rather than a tested record, with qualitative confidence claims needing auditable numeric milestones and funding visibility.
Met : 0
Progress: n/a
Missed : 0
Buy Report $5
WORST-CASE SCENARIO
  • Rapid growth is being funded by working-capital debt: operating cash flow is deeply negative while inventory and current borrowings balloon, leaving liquidity dependent on lender support.
  • Forensic flags concentrate in cash conversion, working-capital divergence, peer-relative market-position erosion, failed Chiho JV capital allocation, and audit/governance coverage.
  • The existential scenario is a triple squeeze: scrap-supply restriction, inventory write-down and working-capital recall all hitting together.
High Risk : 6
Medium Risk : 7
Low Risk : 4
Buy Report $5
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